The dollar stabilized late in the session Thursday against the euro, after a speech by the chairman of the US Federal Reserve (Fed) who unveiled a major change in its monetary policy.

Around 7:15 p.m. GMT (9:15 p.m. in Paris), the euro lost 0.05% against the greenback, at 1.1824 dollars, after briefly gaining up to 0.60% at 1.1901 dollars during Jerome's intervention. Powell.

The latter announced Thursday, during the first day of the virtual meeting of central bankers in Jackson Hole (Wyoming), a change in the policy of the institution he chairs: the Fed will now let inflation increase further to allow the economy to create more jobs.

Concretely, changes to the Fed's policy framework provide that inflation can stay above the 2.0% target "for some time" before the Fed has to act by raising rates. of interest.

“The institution is stepping back from its goal of price stability and focusing on employment,” commented Markets.com analyst Neil Wilson.

"The + new strategy + of the Fed could lead it to maintain rates almost zero even longer than anticipated", added John Plassard, of Mirabaud, evoking four to five years.

"It's a significant change but it was anticipated by the market for some time," added Mr. Wilson, however, which explains the overall relative magnitude of the movements of the euro-dollar pair.

Same story for Erik Nelson of Wells Fargo: "the fact that the dollar quickly recovered after its bout of weakness suggests that the foreign exchange markets had undoubtedly already integrated this turning point into Fed policy", he said. he remarked in a note.

"It would probably take even more drastic measures for the dollar (which has fallen a lot in recent months, editor's note) to fall back even more," he added.

In addition to the US Central Bank, investors learned on Thursday of the US Commerce Department's revision of its estimate of a contraction in Gross Domestic Product for the second quarter to -31.7% at an annualized rate, against -32.9% previously estimated.